Bangladeshi entrepreneur in Kenya eyes expanding macadamia empire
In 2010, Mohammad Khan went to Kenya's Nairobi from Bangladesh in search of a business opportunity, with the hope of settling down and making a fortune.
He wanted a set up a venture that would not only be profitable but also contribute to people's well-being.
His expedition led him to launch a processing plant for macadamia nuts, and around a decade later, he is now producing innovative products, besides exporting the nut to other countries.
The Daily Nation, the top independent newspaper in Kenya, published a report on June 26 this year on the story of Mohammad Khan's endeavors and success.
STEPPING STONE
Talking to the Daily Nation, Khan said he had only a backpack when he arrived in Nairobi in 2010, adding that he went around the city and its suburbs and interacted with people as he looked for something to make a business out of it.
When he came across the Thika Superhighway, which was under construction at the time, he became curious, thinking "what could have led the government to construct such a highway?" adding that he realised "it must be connecting the city to somewhere interesting," he told Daily Nation.
He decided to follow the road and it would lead him to Thika town, where there were a few macadamia processing factories that operated on a small scale.
He researched on the agricultural produce to know about its qualities, and upon realising the prospects of the nut, he decided to launch his venture on it in Thika town and settle there, as "the place was conducive for setting up a factory and had easy access to the produce," said Mohammad Khan.
He sought financing from Business Partners International (BPI), a fund manager providing debt and equity financing to small and medium-sized enterprises in east and southern Africa, to set up his Wish Kenya Limited plant and procure raw materials.
WHY MACADAMIA NUT?
After he came across macadamia nut, he wanted to know more about it since he had not heard of it before, Khan told Daily Nation.
Researching about it, he found that consuming macadamia nuts helps lower levels of bad cholesterol, thus reducing a person's risk of heart attack.
The nuts are very useful to diabetic patients, especially type two, he said.
Over the last nine years since he launched the venture, Khan researched further on macadamia nut, and his research has led him to produce macadamia oil, macadamia milk which is suitable for lactose intolerant people, and cosmetic products from it.
Most people have the notion that nuts are "a luxury", since they do not know about their health benefits, he told the Daily Nation.
His aim is to see people include nuts in their daily meals for better health benefits.
THE VENTURE
Khan travelled across Kenya to identify and visit the macadamia-growing regions, which include Embu, Meru, Nyeri and Kirinyaga counties, from where he collects raw nuts from farmers.
The nuts are then cleaned thoroughly before those are put in a machine to remove the hard shell and then passed through another machine which separates the good nuts from the bad ones.
Those that may have rotten or are low in quality get eliminated at this point, Khan said, adding that a final selection is done manually by the workers to check what might have been omitted by the machine.
The process also involves removing excess moisture from the nuts, he said.
The nuts are then packaged, usually in units of 11.3 kg packages, and are then ready for export.
Khan said he sells 32,660 kg of packed macadamia nuts every month. Each kg of macadamia nuts now fetches 240 Kenyan shilling, which was only between KSh 45 and KSh 50 about 10 years ago, he said.
With greater demand, Kenyan macadamia nuts appreciated in value over the years, he said, adding that this is because Kenya's produce is organic and therefore has more health benefits, unlike macadamia nuts grown in other countries including Australia, New Zealand, the US and Malawi.
"Most countries grow macadamia in orchards and there is a lot of chemical involved. This takes away some of the essential nutrients," said Khan.
On the other hand, the Kenyan macadamia is organically produced and are darker in colour compared to those produced from fully commercialised countries, he also said.
He stressed that farmers in Kenya should embrace growing macadamia nuts because there is a bright future for the sector.
CORONAVIRUS FALLOUT
Like many other businesses, especially those that relied on a single product or service, Khan's venture also dealt a blow from the Covid-19 pandemic.
He had to scale down most of the activities in his processing factory due to the fallout from pandemic, he said.
The challenges, however, helped him come up with innovations to remain relevant in the market.
He is now producing products derived from the nut such as macadamia milk, macadamia oil, and cosmetic products.
Everyone working in or visiting the macadamia factory has to observe high levels of hygiene to avoid any contamination or compromise of the quality of macadamia nuts, Khan told the Daily Nation, dressed in a white dust coat and a disposable protective headgear at the entrance to his warehouse along Lodwar Street in Thika town.
All workers must also have clear medical records before being allowed into the packaging rooms. They are not allowed to wear any perfume and always put on protective gear, Khan said.
This has helped him keep a clean business reputation, especially in the export market, he added.
He expressed hope to widen his horizons and sell the products both locally and back home in Bangladesh.
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